CHS Inc - 8% Cumulative Redeemable

CHS Inc. is a farmer- and cooperative-owned agricultural business that moves grain, oilseeds, fuels, crop inputs, and fertilizer through a network serving producers, local cooperatives, and industrial customers. Its operations span three core reportable segments: Ag, Energy, and Nitrogen Production, with additional financing, hedging, and joint-venture activities in Corporate and Other. The company buys commodities from agricultural producers and member cooperatives, then further processes, stores, transports, markets, or resells those products into domestic and international markets. CHS also provides risk-management, financing, and market-advisory services that support customers exposed to volatile commodity prices. Its business model is built around handling physical commodities and helping members manage supply, logistics, and price risk across the agricultural value chain.

2,1 %

3,2 %

1,7 %

−9,7 %

1.53

0.91

— CHS Inc - 8% Cumulative Redeemable
%
Agricultural inputs25% Crop nutrients, crop protection, seed, and related agronomy products sold to producers and cooperatives.
Grain and oilseed handling30% Origination, storage, processing, merchandising, and resale of grain and oilseed.
Energy products30% Refined petroleum products, wholesale fuels, transportation, and retail fuel distribution.
Renewable fuels and processing7% Ethanol and other renewable fuel-related activities, including processing and marketing.
Nitrogen fertilizer5% Equity-method participation in CF Nitrogen and long-term supply of urea and UAN.
Financial and advisory services3% Commodity hedging, market advisory, and producer financing services.

CHS sells to a mix of farmer-owners, member cooperatives, local retailers, and nonmember agricultural producers that...

  • Member cooperativesprimary

    Primary wholesale customers that buy grain, agronomy products, fuels, and related services to resell to local farm customers.

  • Individual agricultural producersprimary

    Farmers and ranchers buying crop inputs, fuel, financing, and hedging services to support planting, production, and marketing.

  • Energy and wholesale fuel customerssecondary

    Commercial and distribution customers purchasing refined products and transportation services for downstream resale or use.

  • Agribusinesses and processorssecondary

    Food, feed, and agricultural businesses that buy grain, oilseed, and advisory services to manage supply and price risk.

  • Nonmember retail and industrial customerssecondary

    Customers outside the cooperative system that purchase fuels, agronomy products, or commodity services where CHS has market access.

CHS is headquartered in the United States and its cooperative ownership base is concentrated across U.S...

  • •United States is the core operating and ownership base
  • •Midwest and Plains markets are important for fuels and grain flows
  • •Gulf Coast-to-Plains distribution system supports Energy operations
  • •International grain and commodity trade affects Ag segment pricing
  • •Global markets matter because CHS buys and sells commodities worldwide
  • •Regional proximity to producers and cooperatives is a competitive factor

CHS is focused on managing margin rather than absolute commodity price levels, because its revenues and costs move with...

01
Secure long-term fertilizer supplylong-term

Nitrogen is a critical input for members, and supply security improves resilience and bargaining power in a tight fertilizer market.

02
Preserve margin and cash flow disciplineshort-term

Commodity prices are outside management control, so profitability depends on spreads, throughput, and disciplined capital allocation.

03
Expand member support servicesmedium-term

Financing, hedging, and advisory offerings deepen customer relationships and reduce churn in a competitive cooperative market.

CHS is highly exposed to commodity price swings because its revenues, margins, and inventory values move with grain,...

high

Commodity price volatility

CHS buys and sells physical commodities, so changes in grain, fuel, fertilizer, and energy prices directly affect margins, inventory values, and cash flow.

Scope
Ag, Energy, Nitrogen Production
Materiality
high
high

Business interruption and supply chain disruption

Refineries, terminals, transportation assets, and grain facilities can be disrupted by weather, accidents, labor issues, or infrastructure failures.

Scope
Energy and Ag logistics
Materiality
high
high

Cybersecurity incidents

The company depends on IT systems, third-party vendors, and cloud services for trading, logistics, and operations, creating attack surface risk.

Scope
Enterprise systems and trading operations
Materiality
medium
medium

Customer and supplier consolidation

Fewer large buyers and sellers can pressure pricing, reduce volumes, and increase the chance of disintermediation.

Scope
Ag and wholesale customer base
Materiality
medium
medium

Asset impairment and valuation risk

Large long-lived assets, investments in affiliates, and joint ventures require judgment on recoverability and fair value.

Scope
Refining, terminals, equity investments
Materiality
medium
Inventory valuation and reserves
Gross profit and working capital
Derivative and hedging accounting
Revenue, cost of goods sold, and IBIT
Seasonality and working capital
Operating cash flow and liquidity analysis
Equity-method investments
Net income and investment balance
Impairment testing
Operating income and asset values

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: 11/08/2026